London Daily

Focus on the big picture.
Tuesday, Jan 27, 2026

Apple's App Store draws developer ire and legal challenge

Apple's App Store draws developer ire and legal challenge

While Apple chief Tim Cook touts the brand's App Store as an economic miracle, Fortnite-maker Epic Games says developers suffer under its tyranny.
The online shop -- the only way software apps can get onto iPhones or other Apple mobile devices -- is at the heart of a trial opening Monday in a federal court across the bay from San Francisco.

Apple opened its App Store in July 2008, a year after the release of the first iPhone.

The shop, stocked with mobile apps tailored for devices powered by iOS mobile software, was quickly imitated by rival smartphone makers.

It ignited an entire economy where developers big or small could make money with "an app for that," from games or social networking to summoning car rides or ordering food.

Apps are only allowed onto Apple mobile devices through the App Store, which requires them to abide by rules for privacy and security.

The App Store -- the lone gateway onto the more than one billion iPhones in use around the world -- has grown to include more than 1.8 million apps.

Hundreds of billions of dollars in transactions take place at the App Store each year in what Apple chief Cook has called an "economic miracle."

Apple takes a commission of as much as 30% of financial transactions at the App Store, where most apps can be downloaded for free.

In January, Apple reduced its commission to 15% for newcomers and developers making less than a million dollars annually.

Apple had already cut its 30% commission in half in the case of paid subscriptions after the first year.

Some services such as music-streamer Spotify have tried to coax aspiring subscribers to avoid using the App Store. While popular services such as Netflix can rely on people doing business at their own websites, small developers lack that kind of draw.

Amazon was a rare exception, negotiating a special deal at the App Store for subscriptions to its Prime streaming television service.

Epic Games was booted from the App Store last year after it triggered an update in its Fortnite game that bypassed the Apple payment system that collects commissions.

Epic filed a lawsuit in US federal court against Apple, accusing the iPhone maker of monopolistic behavior due to its tight control of the App Store and collection of a "tax."

Apple countered that the commission reflects industry norms and amounts to fair compensation for providing a secure online shop that spans the world.

Epic and other app makers accuse Apple of tyrannically enforcing App Store rules to the Cupertino-based company's benefit.

Spotify has argued that Apple gives its own music service advantage in the shop.

On Friday, the European Union formally accused Apple of using the App Store to unfairly squeeze out music-streaming rivals in one of the biggest-ever competition cases to hit the iPhone maker.

The charge sheet lands as Apple faces a rebellion from firms that want to break free of its store's strict terms and fees, while authorities in the US, Russia, Britain and South Korea are also circling the world's biggest company.

Facebook is among the App Store critics, saying new rules, which block the tracking of users' online activity for ad targeting without express permission, is an abuse of its power.

Google runs an app shop for Android-powered mobile devices, and collects commissions, but it also lets device users get apps elsewhere.
Newsletter

Related Articles

0:00
0:00
Close
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
Meta and EssilorLuxottica Ray-Ban Smart Glasses and the Non-Consensual Public Recording Economy
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Michael Schumacher Shows Significant Improvement in Health Status
Greenland’s NATO Stress Test: Coercion, Credibility, and the New Arctic Bargaining Game
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
U.S. winter storm triggers 13,000-plus flight cancellations and 160,000 power outages
Poland delays euro adoption as Domański cites $1tn economy and zloty advantage
White House: Trump warns Canada of 100% tariff if Carney finalizes China trade deal
PLA opens CMC probe of Zhang Youxia, Liu Zhenli over Xi authority and discipline violations
ICE and DHS immigration raids in Minneapolis: the use-of-force accountability crisis in mass deportation enforcement
UK’s Starmer and Trump Agree on Urgent Need to Bolster Arctic Security
Starmer Breaks Diplomatic Restraint With Firm Rebuke of Trump, Seizing Chance to Advocate for Europe
UK Finance Minister Reeves to Join Starmer on China Visit to Bolster Trade and Economic Ties
Prince Harry Says Sacrifices of NATO Forces in Afghanistan Deserve ‘Respect’ After Trump Remarks
Barron Trump Emerges as Key Remote Witness in UK Assault and Rape Trial
Nigel Farage Attended Davos 2026 Using HP Trust Delegate Pass Linked to Sasan Ghandehari
Gold Jumps More Than 8% in a Week as the Dollar Slides Amid Greenland Tariff Dispute
BlackRock Executive Rick Rieder Emerges as Leading Contender to Succeed Jerome Powell as Fed Chair
Boston Dynamics Atlas humanoid robot and LG CLOiD home robot: the platform lock-in fight to control Physical AI
United States under President Donald Trump completes withdrawal from the World Health Organization: health sovereignty versus global outbreak early-warning access
FBI and U.S. prosecutors vs Ryan Wedding’s transnational cocaine-smuggling network: the fight over witness-killing and cross-border enforcement
Trump Administration’s Iran Military Buildup and Sanctions Campaign Puts Deterrence Credibility on the Line
Apple and OpenAI Chase Screenless AI Wearables as the Post-iPhone Interface Battle Heats Up
Tech Brief: AI Compute, Chips, and Platform Power Moves Driving Today’s Market Narrative
NATO’s Stress Test Under Trump: Alliance Credibility, Burden-Sharing, and the Fight Over Strategic Territory
OpenAI’s Money Problem: Explosive Growth, Even Faster Costs, and a Race to Stay Ahead
Trump Reverses Course and Criticises UK-Mauritius Chagos Islands Agreement
Elizabeth Hurley Tells UK Court of ‘Brutal’ Invasion of Privacy in Phone Hacking Case
UK Bond Yields Climb as Report Fuels Speculation Over Andy Burnham’s Return to Parliament
America’s Venezuela Oil Grip Meets China’s Demand: Market Power, Legal Shockwaves, and the New Rules of Energy Leverage
TikTok’s U.S. Escape Plan: National Security Firewall or Political Theater With a Price Tag?
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
The Greenland Gambit: Economic Genius or Political Farce?
The Greenland Gambit: Economic Genius or Political Farce?
The Greenland Gambit: Economic Genius or Political Farce?
Will AI Finally Make Blue-Collar Workers Rich—or Is This Just Elite Tech Spin?
Prince William to Make Official Visit to Saudi Arabia in February
Prince Harry Breaks Down in London Court, Says UK Tabloids Have Made Meghan Markle’s Life ‘Absolute Misery’
Malin + Goetz UK Business Enters Administration, All Stores Close
EU and UK Reject Trump’s Greenland-Linked Tariff Threats and Pledge Unified Response
UK Deepfake Crackdown Puts Intense Pressure on Musk’s Grok AI After Surge in Non-Consensual Explicit Images
Prince Harry Becomes Emotional in London Court, Invokes Memory of Princess Diana in Testimony Against UK Tabloids
UK Inflation Rises Unexpectedly but Interest Rate Cuts Still Seen as Likely
×